Loading...
HomeMy WebLinkAbout35-City Administrator -, - 'XTC-C~r~~"- 10. '1 l '.' . ' \" From: Dept: Date: ,," ORIGlNAL CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Fred Wilson, City Administrator Subject: Resolution of the Mayor and Common Council of the City of San Bernardino approving Amendment NO.2 to that certain Loan Agreement by and among the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority City Administrator's Office May 9,2005 Council Date: May 16, 2005 Synopsis of Previous Council Action: 10/01/01 10/21/02 12/20/04 4/11/05 Approval of Loan Agreement by and among the City of San Bernardino the San Bernardino Valley Municipal Water District and the San Bernardino Regional Water Resources Authority. Approval of Amendment to Loan Agreement by and among the City of San Bernardino, the San Bernardino Regional Water Resources Authority and the San Bernardino Valley Municipal Water District. Approval of Sub-Recipient Agreement by and between the City and the JPA Water Resources Authority approves Amendment NO.2 to that certain Loan Agreement by and among the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority_ Recommended Motion: Adopt Resolution I ori Sassoon Phone: 5122 Contact person: 1,2and3 Supporting data attached: Staff Reoort. Resolution And Amendment Ward: FUNDING REQUIREMENTS: Amount: No current requirement. Adoption may delay certain repayments. t~ J,txJs--J:J.1 Source: (Accl. No.) -0- (Ar.d nF!!'\r.riptinn) -0- Finance: Agenda Item No. 35 511~/05 "",-,.1!'!lffl<''<I"''':'.'''; "OCO'"lilIf" ~n~''''.~'''' ..... .. ~~".-" . ., ;, CITY OF SAN BERNARDINO - REOUEST FOR COUNCIL ACTION Staff Report Subiect Resolution of the Mayor and Common Council of the City of San Bernardino approving Amendment No.2 to that certain Loan Agreement by and between the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority. Back2round On October 1, 2001, the City entered into a loan agreement with the JPA (the San Bernardino Regional Water Resources Authority) and with Valley (the San Bernardino Valley Municipal Water District). The City and Valley each agreed to loan an amount not to exceed $600,000 to the JP A for the purposes of paying fees and for the expense of consulting work by EEK. On October 21, 2002, Amendment No.1 was approved which provided for an additional loan of $250,000 each. It also added the costs of preparing an Environment Impact Report to the scope of work. This produced a total loan of $850,000 from the City. As of this writing, the JP A' s loan is approaching its limit of $850,000 from both the City and Valley. In order to continue to fund its operations, this Amendment has been proposed. Proposed Amendment The proposed resolution would adopt an Amendment No.2. The Amendment would commit the City and Valley, upon the JPA's written request, to re-loan funds received back from federal grants and other sources pursuant to the Sub-Recipient Agreement and Grant Allocation Agreement approved in late 2004. The total principal loan amount would remain limited to $850,000 at any point in time. This Amendment provides that beginning July 1, 2005, loan proceeds may only be used for the purposes of paying fees and authorized expenses of a project manager, legal counsel, office expenses, etc., as indicated in Section 4, page 3 of the Amendment as follows: Project manager services: Routine legal services: Audit services: Office expenses: Other misc expenses: Total FY 05-06 Budget: $60,000 24,000 5,000 5,000 6.000 $100,000 These expenses are limited to a total of $100,000 for FY 2005-06, of which the City's loan share would be 50% ($50,000). In subsequent years, the Authority will be required to adopt an expenditure plan each year that similarly limits expenses. Additionally, the Amendment will provide funds to be used to pay for other invoices that are currently outstanding through the end of the current fiscal year. These expenses are primarily consultant fees, management, and legal services related to the EIR. The following summarizes the funds currently available and pending invoices. The summary indicates that the total in loan -~- ,~,~,,' -,,-' t, .1 " '"' , , proceeds needed for the remainder of the fiscal year will be approximately $46,000 (with the City's share being 50%, or $23,000): JPA's account balance as of 5/9/05: $ 15,000 Pending invoices (through March 31): RBF: $ 4,500 J. Hoegar: 4,900 Legal svcs:' 7.600 Subtotal: $17,000 (17,000) Estimated expenses (April 1 - June 30): RBF: $ 15,000 J. Hoegar: 15,000 Legal svcs: 14.000 Subtotal: $ 44,000 Total account balance, pending invoices, and expenses: (44.000) $ (46,000) Beginning July 1, 2005, any expenses other than those included in the expenditure plan, and which the Authority desires to pay with loan proceeds, would require approval of the Mayor and Council before drawing down loan funds for those purposes. Other expenses might include costs related to a CEQA challenge. There is also limitation to clarify that specific Project-related tasks with regard to the North Lake Project only will be funded directly by Valley and those for the South Lake only directly by the City. If the North Lake Project moves forward, Valley will be responsible for the cost of acquisition, demolition, relocation, and construction, with the JPA's costs limited to routine administrative expenses. In effect, this Amendment will allow the City to re-loan funds to the JPA as the JPA's loan balance is paid down through the receipt of grant funds. Financial Impact Federal grants earmarked to date for this project are summarized as follows: Grant FY 2003 earmark FY 2004 earmark FY 2005 earmark Totals Federal Grant $ 447,100 482,100 450.000 $1,379,200 Matching Funds 30,000* 394,446** 368.181 ** $ 792,627 Total Grant & Match $ 477,100 876,546 818.181 $ 2,171,827 *In-kind match "Cash match to be provided by Valley, pursuant to the Sub-Recipient Agreement A Sub-Recipient Agreement between the City and the JP A provides that federal grant funds will be used to repay a portion of the JPA's loans from the City and Valley. To date, the FY 2003 earmark has been received, and the $447,100 in grant proceeds was used to repay the City and Valley each $223,550. """"<"=~O,",,'~"r ~ ,_ " I, ,~ " 'J On a go-forward basis, the Grant Allocation Agreement between the City and Valley provides that the City (as the EPA grantee for the FY 04 and FY 05 grants) will process all of the associated reimbursements for Valley, with Valley being responsible for compliance with grant assurances and to provide all local matching funds. In return, Valley will pay the City's General Fund an amount equal to one half of these reimbursements. Both the City and Valley will execute Instruments of Forbearance to further reduce the remaining amounts due under their loans to the JP A. Assuming that all grant funds allocated are eventually received, the amount repaid to the City would total $689,600, which equals 50%" of the grant allocations. Assuming expenses anticipated for the remainder of this fiscal year and proposed for next year, and if all Federal funds were to be received during the fiscal year, the JPA's debt to the City on June 30, 2006 would be approximately as follows: Current outstanding loan balance: Anticipated reimbursements through Grant Allocation Agreement with Valley: City's share of expenses 4/1/05 - 6/30/05: City's share of expenses 7/1/05 - 6/30/06: Total loan balance on 6/30/06: $ 850,000 (689,600)* 23,000 50,000 $ 233,400 *Note that at this time, it is unknown if all grants will be drawn down by the end of the FY 05-06 fiscal year, so the actual loan balance on this date may be higher. Grant reimbursements will take place as Valley incurs eligible expenses and is able to draw down federal funds. Staff will also continue to pursue reimbursement of the City's costs through future federal grant funds. Recommendation Adopt resolution. -, _",.~~.c,"':::':~~~~-,",,"" "~'?"'="~"~-"--"- '" ,,"" ~ ' ., " From: Dept: Date: -- .c..- q- .- .---.-....- CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Fred Wilson, City Administrator City Administrator's Office Subject: Resolution of the Mayor and Common Council of the City of San Bernardino approving Amendment NO.2 to that certain Loan Agreement by and among the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority April 18, 2005 Council Date: April 25, 2005 Synopsis of Previous Council Action: 08/26/98 10/01/01 10/21/02 12/20/04 4/11/05 Approval of the Joint Exercise of Powers Agreement to form the San Bernardino Regional Water Resources Authority. Approval of Loan Agreement by and among the City of San Bernardino the San Bernardino Valley Municipal Water District and the San Bernardino Regional Water Resources Authority. Approval of Amendment to Loan Agreement by and among the City of San Bernardino, the San Bernardino Regional Water Resources Authority and the san Bernardino Valley Municipal Water District. Approval of Sub-Recipient Agreement by and between the City and the JPA Water Resources Authority approves Amendment NO.2 to that certain Loan Agreement by and among the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority. Recommended Motion: Adopt Resolution I nri Sa~~nnn Phone: 51:>2 Contact person: Ward: 1.2 and 3 Supporting data attached: Staff Report. Resolution And Amendment FUNDING REQUIREMENTS: Amount: No current requirement. Adoption may delay certain repayments. Source: (Acct. No.) -0- (A~cl nF!~~riptinn) -0- Finance: Agenda Item Ni #30- 6fI~~ p.~. $I3I1A ~{)!)S-- d .J ._ ".' :::;~"}"'F"'C"""""."W>-" ...... " CITY OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION Staff Report Subiect Resolution of the Mayor and Common Council of the City of San Bernardino approving Amendment No.2 to that certain Loan Agreement by and between the City of San Bernardino, the San Bernardino Valley Municipal Water District, and the San Bernardino Regional Water Resources Authority. Backl!round On October 1, 2001, the City entered into a loan agreement with the JPA (the San Bernardino Regional Water Resources Authority) and with Valley (the San Bernardino Valley Municipal Water District). The City and Valley each agreed to loan an amount not to exceed $600,000 to the JP A for the purposes of paying fees and for the expense of consulting work by EEK. On October 21, 2002, Amendment No.1 was approved which provided for an additional loan of $250,000 each. It also added the costs of preparing an Environment Impact Report to the scope of work. This produced a total loan of $850,000 from the City. As of this writing, the JP A' s loan is approaching its limit of $850,000 from both the City and Valley. In order to continue to fund its operations, this Amendment has been proposed. Prooosed Amendment The proposed resolution would adopt an Amendment No.2. The Amendment would commit the City and Valley, upon the IPA's written request, to re-Ioan funds received back from federal grants and other sources pursuant to the Sub-Recipient Agreement and Grant Allocation Agreement approved in late 2004. The total principal loan amount would remain limited to $850,000 at any point in time. This Amendment also provides that loan proceeds may only be used for the purposes of paying fees and authorized expenses of a project manager, legal counsel, the remainder of the EIR consultant charges, etc.. There is also limitation to clarify that specific Project-related tasks with regard to the North Lake Project only will be funded directly by Valley and those for the South Lake only directly by the City. If the North Lake Project moves forward, Valley will be responsible for the cost of acquisition, demolition, relocation, and construction, with the IPA's costs limited to routine administrative expenses. In effect, this Amendment will allow the City to re-Ioan funds to the JPA as the JPA's loan balance is paid down through the receipt of grant funds. Financial Imoact Federal grants earmarked to date for this project are summarized as follows: Grant FY 2003 earmark FY 2004 earmark FY 2005 earmark Totals Federal Grant $ 447,100 482,100 450,000 $1,379,200 Matchinl! Funds 30,000* 394,446** 368.181 ** $ 792,627 Total Grant & Match $ 477,100 876,546 818.181 $ 2,171,827 *In-kind match "Cash match to be provided by Valley, pursuant to the Sub-Recipient Agreement ~<~ <<,^,."",'c,""', 'c"""'<'E'''~ ' 'YO'-_u- ",.o",-.._.,.,~",,,,,,,,,.,,.,,,-...v,._,.... "< , ,-" %,-.-- " A Sub-Recipient Agreement between the City and the JP A provides that federal grant funds will be used to repay a portion of the JPA's loans from the City and Valley. To date, the FY 2003 earmark has been received, and the $447,100 in grant proceeds was used to repay the City and Valley each $223,550. On a go-forward basis, the Grant Allocation Agreement between the City and Valley provides that the City (as the EPA grantee for the FY 04 and FY 05 grants) will process all of the associated reimbursements for Valley, with Valley being responsible for compliance with grant assurances and to provide all local matching funds. In return, Valley will pay the City's General Fund an amount equal to one half of these reimbursements. Both the City and Valley will execute Instruments of Forbearance to further reduce the remaining amounts due under their loans to the JP A. Assuming that all grant funds allocated are eventually received, the amount repaid to the City would total $689,600, which equals 50% of the grant allocations. If none of these repayment amounts were re-Ioaned to the JPA, the JPA's remaining debt to the City would be $160,400. If all repayments are eventually re-Ioaned to the JPA, the JPA's debt to the City would be $850,000. At this time, the eventual cost to the City remains unknown, but the City's exposure would be capped at $850,000. Staff will also continue to pursue reimbursement of the City's costs through future federal grant funds. Recommendation Adopt resolution. , , O2 13 -14 25 o "-~#_~-~, CQ)~Y 3 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO.2 TO THAT CERTAIN LOAN AGREEMENT BY AND AMONG THE CITY OF SAN BERNARDINO, THE'SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, AND THE SAN BERNARDINO REGIONAL WATER RESOURCES AUTHORITY 4 5 6 WHEREAS, the City of San Bernardino, California (the "City"), is a charter city, duly 7 organized and existing pursuant to the provisions of the Constitution of the State of California; 8 and 9 WHEREAS, the City, the San Bernardino Valley Municipal Water District (the "District") and the San Bernardino Regional Water Resources Authority (the "Authority") heretofore entered into that certain 2001 Loan Agreement dated as of October 1, 2001 (the "Loan Agreement"), pursuant to which each of the City and the District agreed to loan to the Authority an amount not to exceed Six Hundred Thousand Dollars ($600,000.00) for the 10 II 12 15 purposes of paying the fees and authorized expenses of the Initial Consultant; and WHEREAS, the City, the District and the Authority heretofore entered into that certain 16 Amendment No.1 to 2001 Loan Agreement dated as of October 21,2002, pursuant to which 17 each of the City and the District agreed to loan to the Authority an amount not to exceed an 18 additional Two Hundred Fifty Thousand Dollars ($250,000.00) for the purposes of paying the 19 fees and authorized expenses of the Initial Consultant and the next phase in the development 20 and implementation of the Project as redefined by the Authority, to wit: the preparation of an Environmental Impact Report ("EIR") in accordance with the California Environmental Quality Act, as amended and the Guidelines established thereunder; and 21 22 23 WHEREAS, the Authority retained the services of a firm to assist the Authority in the 24 preparation of an EIR (the "EIR Consultant"); and 4831-1871-7440.1 -1- _""]Il;-",!~'TT . , 0 2 3 4 5 6 7 8 9 10 11 12 013 14 25 o WHEREAS, upon repayment, in whole or in part, and from time-to-time of the amounts owed by the Authority to the City and the District, the City and District hereby commit to re- loan additional funds attributable to repayments received from such appropriate federal grant funds only, on an equal basis, to the Authority, so long as the total principal amount as so loaned and outstanding at anyone time, plus any remaining balance so owed to City and District by the Authority never exceeds Eight Hundred Fifty Thousand Dollars ($850,000) in principal at any point in time for either the City or District. NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1: The Mayor and Common Council hereby approves Amendment No. 2 attached hereto as Exhibit "A". The Mayor of the City of San Bernardino is hereby authorized and directed to execute Amendment No.2, together with such technical and conforming changes as may be approved by the City Attorney. 15 III III III III III 16 17 18 19 20 21 22 23 24 4831-1871-7440.1 -2- ~- .:: I:;I-~'4,~~_~~:.=~:'~,;"T'1~~_:~:~:_~~'--- -,.,.,....', , , 0 2 3 4 5 13 014 25 o '~'~,-"-'~., RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING AMENDMENT NO. 2 TO THAT CERTAIN LOAN AGREEMENT BY AND AMONG THE CITY OF SAN BERNARDINO, THE SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT, AND THE SAN BERNARDINO REGIONAL WATER RESOURCES AUTHORITY Section 2. This Resolution shall take effect upon its adoption and execution in the 6 manner as required by the City Charter. 7 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 8 Common Council of the City of San Bernardino at a meeting thereof, held on the 9 day of , 2005, by the following vote to wit: 10 11 Council Members: Aves Navs Abstain Absent 12 15 ESTRADA LONGVILLE MCGINNIS DERRY KELLEY JOHNSON MC CAMMACK 16 17 18 19 Rachel G. Clark, City Clerk 20 day of ,2005. The foregoing resolution is hereby approved this 21 22 23 Judith Valles, Mayor City of San Bernardino Approved as to form and Legal Content: 24 4831-1871-7440.1 -3- , . o e o . "+::::i'':':'~~'''''''':~'C'-~'" ,~" - - AMENDMENT NO.2 TO 2001 LOAN AGREEMENT (City of San Bernardino and the San Bernardino Valley Municipal Water District) THIS AMENDMENT NO.2 is entered into this _ day of , 2005, by and among the City of San Bernardino, a California charter city (the "City"), the San Bernardino Valley Municipal Water District, a public water district organized under the laws of the State of California (the "District"), and the San Bernardino Regional Water Resources Authority, a joint powers authority organized pursuant to California Government Code Section 6500, et seq. (the "Authority"). WHEREAS, the Authority was organized for the purpose of determining the most beneficial method of alleviating high ground water problems existing in the City; and WHEREAS, to accomplish its goals and objectives, the Authority is conducting a water resource and storage project formerly known as the San Bernardino Vision 20/20 Project which is now defined as the project described in the current EIR (as defined below) as the North Lake Project and the South Lake Project (collectively, the "Project"); and WHEREAS, the Authority initially retained Ehrenkrantz, Eckstut & Kuhn Architects PC (the "Initial Consultant") to assist in the development and implementation of the Project as initially described; and WHEREAS, the City, the District and the Authority heretofore entered into that certain 2001 Loan Agreement dated as of October 1, 200 1 (the "Loan Agreement"), pursuant to which each of the City and the District agreed to loan to the Authority separate amounts not to exceed Six Hundred Thousand Dollars ($600,000.00) for each of the City and the District for the purposes of paying the fees and authorized expenses of the Initial Consultant; and WHEREAS, the City, the District and the Authority heretofore entered into that certain Amendment No.1 to 2001 Loan Agreement dated as of October 21, 2002, pursuant to which each of the City and the District agreed to loan to the Authority separate additional amounts not to exceed an additional Two Hundred Fifty Thousand Dollars ($250,000.00) for each of the City and the District for the purposes of paying the fees and authorized expenses of the Initial Consultant and RBF Consultants (the "Consultants") for the next phase in the development and implementation of the Project as redefined by the Authority, to wit: the preparation of an Environmental Impact Report ("EIR") in accordance with the California Environmental Quality Act, as amended and the Guidelines established thereunder; and WHEREAS, upon repayment, in whole or in part, and from time-to-time of the amounts owed by the Authority to the City and the District, the City and District hereby commit to re-loan additional funds attributable to repayments received from such appropriate federal grant funds only, on an equal basis, to the Authority, so long as the total principal amount as so loaned and outstanding at anyone time, plus any renlaining balance so owed to City and District 4824.2665.7536.1 I '0-"":. ,":''''''~''':c~''~'''rn ,. -. . '. . . o o by the Authority, never exceeds Eight Hundred Fifty Thousand Dollars ($850,000) in principal at any point in time for either the City or District. NOW, THEREFORE, in consideration of the premises and such other good and valuable consideration, receipt of which is acknowledged by the parties, the parties hereto agree as follows: Section 1. Except as hereby amended, the Loan Agreement, as amended by Amendment No.1, is in all respects ratified and confirmed and all of the terms, provisions and conditions thereof shall be and remain in full force and effect. Section 2. Except as otherwise provided herein, all terms not otherwise defined in this Amendment No.2 shall have the same meanings in this Amendment No.2 as those terms are given in the Loan Agreement, as previously amended. Section 3. Paragraph numbered 1 of the Loan Agreement is amended by adding the following at the end of said Paragraph: "Upon repayment, in whole or in part, and from time-to-time of the outstanding Eight Hundred Fifty Thousand Dollars ($850,000) owed by the Authority to each the City and District, the City and District commit to re-loan additional funds which are received as loan repayments from the Authority attributable to appropriate federal grant funds only on an equal basis to the Authority upon receipt of the Authority's written request for such subsequent loan, provided that the total principal amount as so loaned by each of the City and the District, plus any remaining principal balance so owed to the City and District by the Authority, never exceeds Eight Hundred Fifty Thousand Dollars ($850,000) at any point in time, for either the City or District, subject to the limitations contained in Paragraph 2 of this Agreement. The President of the Authority shall be hereby authorized to act for and on behalf of the Authority to request in Writing such additional loan of funds from the City and the District in such amounts and subject to the requirements as set forth above." Section 4. Paragraph numbered 2 of the Loan Agreement is hereby amended in its entirety to read as follows: "2. Use of Citv/District Loan~ The Authority shall use the City/District Loan proceeds solely for the purposes of paying fees and other routine expenses associated with the normal operations and administrative activities of the Authority, such as costs of the project manager, legal counsel, the remaining invoices of the Consultant related to the EIR and for such other fees and other o necessary and normal expenses reasonably incurred by the. 4824.2665.7536, I 2 iV"'"',""""'e'"",,, ' o _ o ,~_.~~=,,' ' Authority related to the Project. It is understood that future specific Project-related tasks with respect to (i) the North Lake Project only will be funded directly by the District, and (ii) the South Lake Project only will be funded directly by the City, including, but not limited to, relocation, planning, NEP A analysis, property acquisition, and other activities associated with the planning, design and construction of the North Lake Project and the South Lake Project, respectively. Notwithstanding any other provisions of this section, it is understood by the parties that beginning July 1, 2005, the City/District Loan proceeds shall be used only for expenditures that are made in accordance with an Expenditure Plan that shllll be annually adopted by the Authority. For the fiscal year beginning July I, 2005, the Expenditure Plan for the Authority shall be as follows: Project manager services: Routine legal services: Audit services: Office expenses: Other misc expenses: Total FY 05-06 Budget: $60,000 24,000 5,000 5,000 6.000 $100,000 Beginning July 1, 2005, the Authority may use City/District Loan proceeds for expenses other than those contained in the Expenditure Plan only upon the approval of the Mayor and Common Council of the City and the Board of Directors of the District. " Section 5. This Amendment No.2 may be executed in counterparts, each of which shall be an original, and all of which shall constitute but one and the same instrument. 4824-2665-7536.1 3 -"'~;''''C-"''~=''''''''''''',~--'--''' . o o o -,-..-- -.---,--- .. .,-~-~-_._-_._-.- .. '.'='~~~'~~- . . IN WIlNESS WHEREOF, the parties hereto have duly executed this Amendment No.2 as of the date first above written. CITY City of San Bernardino By: Judith Valles Mayor ATTEST: By: City Clerk APPROVED AS TO FORM AND LEGAL CONTENT: DISTRICT San Bernardino Valley Municipal Water District By: C. Patrick Milligan President ATTEST: By: Secretary 4824-2665-7536.1 4 , . o o o 0',',",:. ,"C'~"">-'" ," < (SEAL) ATTEST: By: Secretary APPROVED AS TO FORM: By: Authority Counsel 4824-2665-7536.1 ~'"l~'~C<' -ml:~'''''''~'''r-T=W' =' "C"'''n-'''1'"''(TT''~C-~."~FF''.7'''i'''''~='=''-'TI'' .-~ AUTHORITY San Bernardino Regional Water Resource Authority By: Judith Valles President . 5